Shirai Electronics Industrial Co., Ltd. (6658) AI Stock Analysis

• Market Cap: ¥8.55B
• Dividend Yield: 5.3%
• Average Volume (3M): 80.88K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.92
• Revenue Growth: 1.75%
• EPS Growth: 29.94%
• Country: JP
• Employees: 1,234
• Sector: Technology
• Sector Strength: 79
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 45.48
• Shares Outstanding: 15,116,000
• 10 Day Avg. Volume: 70,100
• 30 Day Avg. Volume: 80,876
• PEG Ratio: -1.27
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥633.00 ▲(11.84%Upside)

Shirai Electronics receives a strong overall score driven primarily by attractive valuation and positive technical analysis. The company's strong financial performance is moderated by concerns over cash flow management. Absence of earnings call and corporate events data does not affect the score.

Shirai Electronics Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Shirai Electronics Industrial Co., Ltd. manufactures printed circuit visual inspection machine boards in Japan and internationally. The company offers transparent flexible boards; double-sided/multi-layer printed boards, high-functionality boards, and MEMS field products, as well as provides transparent heater film related products. Its products are used in electronic applications. Shirai Electronics Industrial Co., Ltd. was founded in 1966 and is headquartered in Shiga, Japan.

How the Company Makes Money

Shirai Electronics Industrial Co., Ltd. generates revenue by manufacturing and selling electronic components to various industries, with a significant focus on automotive and consumer electronics. The company's key revenue streams include sales of connectors and flexible printed circuits, which are essential components in electronic devices. Shirai Electronics may also engage in partnerships with other electronics manufacturers to supply parts and collaborate on product development, further contributing to its earnings. The company's success is influenced by the demand in the automotive and consumer electronics markets, technological advancements, and its ability to maintain competitive pricing and high-quality standards.

Shirai Electronics Industrial Co., Ltd. Financial Statement Overview

Summary

Shirai Electronics demonstrates solid profitability with stable margins and a moderate leverage balance sheet. However, declining revenue and recent cash flow management issues present significant risks. Strategic initiatives are needed to address these challenges.

Income Statement

Shirai Electronics has shown a mixed performance in its income statement. The gross profit margin for TTM (Trailing-Twelve-Months) stands at approximately 20.2%, reflecting a solid ability to manage production costs relative to revenue. However, there is a notable decline in total revenue from the previous year, indicating a revenue growth challenge. The net profit margin for TTM is approximately 5.6%, which suggests moderate profitability. EBIT and EBITDA margins for TTM are 8.3% and 11.3%, respectively, demonstrating decent operational efficiency. Overall, while the company has stable margins, the declining revenue is a concern.

Balance Sheet

The balance sheet of Shirai Electronics indicates a stable financial position with a debt-to-equity ratio of 0.46 in the TTM period, showing moderate leverage. The return on equity (ROE) is approximately 16.9%, which is a decent return for shareholders. The equity ratio stands at 46.0%, suggesting a balanced capital structure. Despite these strengths, the company's total assets have been decreasing slightly, which may indicate a need for more growth-focused strategies.

Cash Flow

The cash flow statement reveals some weaknesses, notably the absence of operating and free cash flow in the TTM period, which could point to cash management issues. Historically, the company has maintained a positive operating cash flow, but the recent lack of free cash flow growth is concerning. The prior year's free cash flow to net income ratio was reasonable, suggesting past efficiency in generating cash from operations.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
27.07B	28.83B	32.86B	29.40B	22.36B	26.14B
	Gross Profit
5.47B	5.61B	6.14B	4.88B	3.34B	3.82B
	EBIT
2.25B	2.31B	2.83B	1.56B	119.00M	-97.00M
	EBITDA
3.06B	3.36B	3.79B	2.66B	1.16B	1.13B
	Net Income Common Stockholders
1.52B	1.49B	2.06B	1.33B	-208.00M	-500.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59B	1.99B	1.20B	2.15B	2.52B	1.94B
	Total Assets
19.52B	19.70B	20.63B	22.34B	20.32B	20.64B
	Total Debt
4.17B	5.41B	7.68B	10.60B	11.93B	11.65B
	Net Debt
2.58B	3.41B	6.48B	8.45B	9.41B	10.17B
	Total Liabilities
10.42B	11.77B	14.65B	18.24B	17.85B	18.12B
	Stockholders Equity
8.98B	7.84B	5.90B	3.94B	2.32B	2.35B
Cash Flow		Free Cash Flow
0.00	2.89B	2.69B	1.66B	29.00M	80.00M
	Operating Cash Flow
0.00	3.17B	3.14B	2.52B	1.28B	1.30B
	Investing Cash Flow
0.00	6.00M	-430.00M	-620.00M	-1.12B	-1.32B
	Financing Cash Flow
0.00	-2.36B	-3.80B	-2.37B	474.00M	-335.00M

Shirai Electronics Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 566.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6658, the sentiment is Positive. The current price of 566 is above the 20-day moving average (MA) of 557.10, above the 50-day MA of 550.78, and above the 200-day MA of 555.01, indicating a bullish trend. The MACD of 5.95 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 79.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6658.

Shirai Electronics Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6658	77 Outperform	¥8.55B	4.11		5.30%	1.75%	29.94%
Sector *	61 Neutral	$11.55B	10.41	-6.86%	2.93%	7.50%	-8.30%
UM3		€57.19M	5.22	-15.14%	3.08%	―	―
6772	79 Outperform	¥9.20B	12.39		2.69%	0.69%	-25.68%
6928	74 Outperform	¥9.40B	20.39		5.04%	6.48%	277.27%
6864	73 Outperform	¥9.50B	21.07		2.37%	-3.36%	39.15%
6919	72 Outperform	¥9.60B	23.91		6.06%	-2.94%	-52.90%